Indonesia manufacturing on record high

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yamaha motorIndonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers’ index (PMI) survey showed on June 2.

The index rose to 52.4 in May from 51.1 the previous month, the highest reading since data collection began in April 2011. A reading above 50.0 signals expansion.

New orders increased to the highest level on record, as companies signaled increasing levels of new work, strengthening demand and successful launches of new products in Southeast Asia’s largest economy.

“In the months ahead, a persistence of the trends seen in the May PMI would signal that the policy-induced slowdown in domestic activity is starting to bottom out,” said Su Sian Lim, economist at HSBC.

The report also noted that new business from abroad rose for the fifth straight month, fueled by an increase in demand from key export clients. Despite the expansion in export demand being modest, it represented the fastest rate in a year.

While cost inflation weakened to a 11-month low, factory gate prices also rose at the slowest rate since August last year. The rate of increase in factory gate prices was lower than that of input costs.

Employment in the manufacturing sector declined in May following a marginal increase seen in the previous month.

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Reading Time: 1 minute

Indonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers’ index (PMI) survey showed on June 2.

Reading Time: 1 minute

yamaha motorIndonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers’ index (PMI) survey showed on June 2.

The index rose to 52.4 in May from 51.1 the previous month, the highest reading since data collection began in April 2011. A reading above 50.0 signals expansion.

New orders increased to the highest level on record, as companies signaled increasing levels of new work, strengthening demand and successful launches of new products in Southeast Asia’s largest economy.

“In the months ahead, a persistence of the trends seen in the May PMI would signal that the policy-induced slowdown in domestic activity is starting to bottom out,” said Su Sian Lim, economist at HSBC.

The report also noted that new business from abroad rose for the fifth straight month, fueled by an increase in demand from key export clients. Despite the expansion in export demand being modest, it represented the fastest rate in a year.

While cost inflation weakened to a 11-month low, factory gate prices also rose at the slowest rate since August last year. The rate of increase in factory gate prices was lower than that of input costs.

Employment in the manufacturing sector declined in May following a marginal increase seen in the previous month.

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